Principal Analyst, Datamonitor Healthcare
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Latest From Amanda Micklus
Device fundraising in the first quarter totaled $7.6 billion, thanks to Siemens Healthineers $5.2 billion IPO, which accounted for more than two-thirds of the total. Q1 M&A activity reached $6.7 billion, a significant rise from Q4's $3.9 billion. Similarly, aggregate first quarter diagnostics financings (at $1.5 billion) and M&As (at $543 million) also experienced substantial increases over the previous quarter.
Pharmaceuticals have been, and are forecasted to be, the main revenue driver for big pharma, but reliance on this market could shift because of challenges, ranging from generic and biosimilar competition to low R&D productivity. An analysis based on the indicative profit potential metric finds that branded prescription drugs remain the most profitable market to play in, but other sectors may offer opportunities.
Biopharma financing started the year solidly with $16.6 billion in total deal value, a 14% increase over the previous quarter. Q1 2018 biopharma merger and acquisition deal value, led by Cigna's $67 billion buy of Express Scripts, topped even the previous all-time-high set in Q4 2107, while alliances totaled $30.7 billion and featured big oncology and neurology partnerships.